The Internal Revenue Service has proposed tax relief for money market fund investors in response to concerns about proposed reforms from the Securities and Exchange Commission in the money market industry that could trigger so-called “wash sale’ tax rules.

The Securities and Exchange Commission has proposed transitioning money market funds used by institutional investors from a price of $1 per share to a floating net asset value, or NAV. The proposed reform comes in response to the panic that ensued in the money market industry in 2008 when the Reserve Primary Fund could not maintain the stable $1 per share price because of losses sustained on Lehman Brothers debt and “broke the buck,” as well as recommendations from the Financial Stability Oversight Council, according to Reuters.

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